Maravi

Govt not likely to take action on mines fraud - Dr Mpande

Govt not likely to take action on mines fraud - Dr Mpande
By By Mutale Kapekele
Thu 17 Feb. 2011, 03:59 CAT

THE government does not care and is likely to take no action on the fraud that is being committed by foreign mining firms, says mining expert Dr Mathias Mpande.

Dr Mpande made the remarks yesterday following the pilot audit on Mopani Copper Mines, which revealed inconsistencies in production figures the mine submits to the Zambia Revenue Authority (ZRA) for tax administration, figures which the report indicated might not be trustworthy.

Dr Mpande said the government was likely not to do anything about the new audit report because it had always known what was going on at Mopani and other mines but did not care to follow up and take action against the erring mines.

“I have commented about the problems in the mines for the past three years but the government doesn’t care and it is unlikely that they will take action about the fraud that has been committed by foreign mining firms,” Dr Mpande said in an interview. “How can finance minister Situmbeko Musokotwane defend crooks? He was the first one to castigate informants about the fraud in the mines, then commerce minister Felix Mutati also joined in defending when it’s not his portifolio. He is not supposed to comment on financial matters but because his elder brother Emmanuel, who is a good man and a good friend of mine, is CEO of Mopani, he is busy defending. Anybody who is intelligent knows that there are problems in the mines. ZRA knows that and the government knows that.”

He said the government had the power to act and compel the mines to pay what was due to the country and it was up to President Rupiah Banda to show leadership on the matter.
“It is the people of Zambia who are hurt and it is the government that should take action. They have a lot of power and ZRA can seize all the assets from Mopani and just tell them that all that you have produced will be ours since you have evaded tax,” said Dr Mpande. “But ZRA is an agent of the Ministry of Finance and the chief minister there is the President. No minister can act without the knowledge of the President but do you see RB doing anything about the mines? We will wait and see and those who love Zambia will do something about it. This is a time of reckoning. Otherwise we will be on our own in the cold.”

Labels: MATHIAS MPANDE

posted by MrK @ 8:44 AM